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Fatwa CenterVisa Islamic Credit Card of SIBL in Bangladesh
Question
As-salamualikum. I am A. K. M. Nur Alam Siddiki from Dhaka, Bangladesh. I need a fatwa. Recently I have signed in for an “VISA Islamic Credit Card” which is based on “Bai-Murabha” that means buying goods and services and selling it to the customers with markup profit. It can be sold to the customers against full payment at the time of sale or installment payment in future date. Social Islami Bank Limited (SIBL) of Bangladesh recently introduced VISA Islamic credit card based on Bai-Murabha policy (http://www.siblbd.com/home/credit_card). Bank says that actually they buy products or service from merchant and sell it back to me at 27% mark-up profit (0.075% profit per day; flat rate). Bank gives me maximum 54 days (24 days from statement date) grace period. If I have failed to pay my outstanding only then they charged 27% mark-up profit (flat rate). Bank charged their profit only for principal amount. They never charged profit for unpaid profit of previous months (Conventional credit card calculate compound interest but my card is free from this. They only charged flat profit on unpaid principal amount). If a minimum amount is not paid they charged fine of 2.5 dollar. Annual fee of the card is 5.5 dollar. Cash withdrawal has no grace period. (Bank is trying to solve this problem by considering cash withdrawal as purchase setting Punching machine in their Branches) and charged 3% profit upto 250 dollar and 2% for >250 dollar. Processing fee for cash withdrawal is 1.5%. SIBL has a Shariah Board. Bank claim that their cards are fully Shariah complaint since their cards are approved by the Shariah Board. My question is- Q. Purchasing goods with SIBL VISA Islamic credit card and paying money in installment will be Halal or Haram? ( Bank will charge 2.25% profit per month on Principal unpaid amount only. Not charged on the profit of the previous months)
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
A legal ruling on something is subsidiary of having [correctly] conceptualized it, i.e. one has to know its details before giving a judgment about it. The transaction of the “VISA Islamic Credit Card” and how it works is not clear enough for us to pass a final judgment about its permissibility.
However, if the bank has a reliable Sharee'ah Board whose knowledge and piety are trusted, then you can seek explanation from it and follow their Fatwa in that regard. You can also consult the scholars of your country as they will be more aware of and familiar with those transactions.
Allaah Knows best.
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